Shiv-Vani sinks 10%, hits 52-week low on concerns of winding up

NEW DELHI: Shiv-Vani Oil & Gas Exploration Services Ltd plunged as much as 9.7 per cent to hit its 52-week low of Rs 13.90 on Wednesday, after foreign lenders served winding up notice to the company for defaulting on dues to the extent of $84.5 million or around Rs 480 crore.

At 09:40 a.m.; Shiv-Vani was trading 9.7 per cent lower at Rs 13.90 on the Bombay Stock Exchange. The stock hit a high of Rs 14.35 in trade today.

The matter will soon come up for hearing in the Delhi High Court and in London, said two persons familiar with the development.

"The Delhi-based company defaulted on foreign currency convertible bonds ( FCCB) on July 16," ET reported.

FCCB, a popular instrument to raise money when markets were on a high, are now becoming a headache for them because shares have crashed and bonds are coming up for repayment.

Shiv-Vani Oil posted a steep 89% drop in its consolidated profits for FY13, after its revenues fell 16.5%, while operating expenses, interest and depreciation increased.

The company carried a debt of Rs 3,090 crore as on March 31, 2013, which was two-fold of its equity. The company had adopted a fast-track growth approach, quadrupling investment in assets between FY08 and FY12.